TotalEnergies and Nigerian National Petroleum Corporation (NNPC) are planning to invest $550m to develop a new gas processing facility in Rivers state, Nigeria, reported Reuters, citing sources.  

This investment by the French energy giant and state-owned NNPC aims to augment gas exports and bolster domestic supplies. 

The project will encompass the construction of both a gas processing plant and a pipeline, a person familiar with the development told the publication. 

Although TotalEnergies did not issue a statement, a representative from NNPC indicated that an official announcement is expected within the week. 

The planned facility, to be situated in the Ubeta onshore gas field co-owned by TotalEnergies and NNPC, is designed to feed gas to the Nigeria Liquefied Natural Gas (NLNG) plant.  

NLNG is a consortium comprising NNPC, the UK’s Shell, TotalEnergies and Italian oil and gas company Eni. 

Upon completion, the plant is expected to produce 350 million standard cubic feet per day of gas and 10,000 barrels per day (bpd) of associated liquids.  

Nigeria, home to one of Africa's largest reserves of natural gas (exceeding 200 trillion cubic feet), has historically flared gas from its oilfields due to a lack of processing facilities and financial constraints. 

The investment is seen as a positive response to President Bola Tinubu's efforts to draw investment into Nigeria's energy sector.  

In May, TotalEnergies secured its inaugural supply agreement with the Dangote Refinery in Nigeria. 

Billionaire industrialist Aliko Dangote has been actively sourcing crude for his refinery, projected to be the largest in Africa and Europe with the capacity to process 650,000bpd when operating at full capacity. 

The refinery, which commenced production in January, represents a $20bn investment.